(FIDU) Fidelity MSCI Industrials - Ratings and Ratios

The Fidelity® MSCI Industrials Index ETF (FIDU) is designed to track the performance of the U.S. industrial sector through its underlying index, the MSCI USA IMI Industrials 25/25 Index. This index is structured to include a diversified range of companies within the industrial sector, with a weighting mechanism that ensures no single company exceeds 25% of the index, and the top 25 companies by market capitalization are each capped at 25%. This approach aims to balance exposure across the sector while mitigating concentration risk.

FIDU invests at least 80% of its assets in securities from its underlying index, but it may not hold every security included in the index. This allows the fund to maintain flexibility in tracking the indexs performance while managing operational efficiency. With an AUM of $1.3 billion, FIDU offers a scale that supports decent liquidity for investors. The funds tracking error is typically low, given its passive strategy, making it a straightforward option for exposure to the U.S. industrials sector. For investors and fund managers, FIDU provides a cost-effective way to gain diversified exposure to U.S. industrial companies, aligning with broader sector trends and economic cycles.